The New York State Department of Public Service (Department), at the direction of the New York State Public Service Commission (Commission), is seeking an independent consulting firm to assess the long-term gas plans of National Grid (The Brooklyn Union Gas Company d/b/a National Grid NY (KEDNY); KeySpan Gas East Corporation d/b/a National Grid (KEDLI); and Niagara Mohawk Power Corporation d/b/a National Grid (NMPC)), Corning Natural Gas Corp. (Corning), and Liberty Utilities (St. Lawrence Gas) Corp. (St. Lawrence). The National Grid Companies will file a single joint plan by May 31, 2024. Corning will file its plan by September 30, 2024. St Lawrence will file its plan by January31, 2024. Consulting firms should indicate in their proposals if they wish to be considered for assessing only the plan submitted by National Grid, only the plan submitted by Corning, only the plan submitted by St. Lawrence, or any combination of the three. The Department may select one consulting firm to review all plans or may choose separate consulting firms.

The Commission has adopted modernized long-term natural gas planning procedures to ensure that the State, customers, stakeholders, and all other interested entities have the opportunity to understand and engage in the future of natural gas infrastructure in the State. This modernized gas planning process is designed to build on recent experience and adopt improved planning and operational practices to enable the local gas distribution companies (LDCs) to meet current and future customer needs and expectations in a transparent and equitable manner, while minimizing infrastructure investments, and maintaining safe and reliable service.

Additionally, planning must be conducted in a manner consistent with the recently enacted Climate Leadership and Community Protection Act (CLCPA). On December 19, 2022, the New York State Climate Action Council finalized its Scoping Plan. The Scoping Plan points to integration analysis scenarios indicating that the vast majority of current fossil natural gas customers (residential, commercial, and industrial) will transition to electricity by 2050 and stated that the analysis identified fossil natural gas use reductions statewide by at least 33% by 2030 and by 57% by 2035. While the CLCPA does not impose specific requirements on the State’s gas distribution system, rationally, meeting the CLCPA’s emissions reduction targets for the entire economy will require emissions reductions from the gas distribution system. The Scoping Plan points out that, during the transition to the decarbonized system, some investments in traditional infrastructure will be necessary to maintain safety and reliability for remaining natural gas customers but greater scrutiny of such investments is warranted to reduce potential stranded costs. The Commission recognizes the role of natural gas in greenhouse gas (GHG) emissions and modernizing the gas planning process will prepare gas utilities for addressing the Climate Action Council’s recommendations to the benefit of all New Yorkers.

To ensure that residents of New York can continue to meet their energy needs, the public interest requires that gas utilities provide information to the Department, other government entities and agencies, and stakeholders related to the promotion of effective planning and consideration of gas alternatives, thereby reducing costs and emissions while minimizing impacts upon economic development. More broadly, incomplete, or insufficiently transparent planning can also lead to infrastructure expenditures that are costly to customers; unneeded, misplaced, or misaligned capital development; and use of fuel choices both at odds with State energy policies and that result in increased emissions.

Potential bidders are encouraged to stay informed of recent Commission actions and related developments by visiting the Commission’s website and/or by viewing Commission sessions.